Just as fashion fads come and go, so too do food trends (avocado toast, anyone?). Sometimes, these trends seem to move in cycles, where it once was outdated, only to be revived and re-embraced (think fondue and the popular restaurant, The Melting Pot). As a restaurant owner, it’s important to not only keep on top of dining trends but to be prepared and flexible enough to adapt as these trends evolve. After all, when consumers’ tastes change direction, their wallets will follow.

What’s on the Agenda for 2020

CBD: It’s everywhere now. Ever since The Farm Bill was signed into law, cannabidiol, the active compound found in the Cannabis plant touted for its health benefits, is popping up in places and forms you’d never expect. No longer confined to capsules and oils, you can now find CBD in items like cocktails, popcorn, sparkling water, gummies, chocolate, and more. Keep in mind infusing CBD into foods is not federally legal nor is it legal in every state.

Collagen: What you thought you’d only find in skin creams and pills is now showing up on menus, from bone broths to smoothies. On the consumer packaged goods front, you’ll find collagen in products like drink mixes, creamer, and bars. Why ingestible collagen? Many consumers are gobbling up so-called “beauty foods” like these to improve their skin, hair, and nails. Others consider using as an aid in their keto diets. While the efficacy of eating collagen is still up for debate, its popularity cannot be ignored. The use of collagen is a trend we see continuing into the coming year.

Plant-Based: You may be living under a rock if you haven’t heard about meatless burgers, particularly the ones made by Impossible Foods and Beyond Meat. Big chains like Burger King and Carl’s Jr. have already introduced meatless options to customers. Meanwhile, KFC is testing out meatless chicken at a restaurant in Atlanta, and other food companies are following suit. Consumers’ perception that meatless is healthier is driving the surge in demand. NPD reports that “case shipments of plant-based protein from broad-line foodservice distributors to foodservice operators increased by 20 percent in the year ending November 2018 compared to year ago with all Census regions showing double-digit growth.”

Sustainability: With climate and ecological health concerns ever-growing, people are seeking more ways to promote global sustainability. Numerous cities and states have already enacted strict regulations on plastic straws at food establishments (only giving straws on request, for example), to outright bans. Along with straws, other single-use plastics are being scrutinized and swapped out for more eco-friendly options. You won’t be hard-pressed to find Styrofoam packaging and cups replaced with those made with recycled paper and renewable materials.

Even More Convenience: In 2020, you’ll likely see more of your favorite restaurants listed on third-party delivery apps like Doordash, Grubhub, Postmates, and Uber Eats. Just last month McDonald’s announced a partnership with DoorDash that will secure meal delivery services in 10,000 stores across all 50 states. Bringing convenience to the consumer will extend to in-store traffic too, with an increase in self-ordering kiosks and self-pickup cabinets for mobile orders.

The new year is sure to bring in surprises and challenges for those in the restaurant industry. You’re already one-step-ahead of the competition if you recognize the need to adapt to changing consumer preferences. It’s not too early to begin strategizing to accomplish your goals for the upcoming year. For professional help in menu development, restaurant branding, restaurant design, off-premise sales or bringing a new concept to life, please contact Synergy.

Food supply chains across the globe are getting increasingly connected, streamlined, and more efficient. In the developed world, the increase in low-cost food supplies is creating a culture of high waste.

According to a New York Times article, Americans waste about $160 billion a year in food. Worldwide, close to 1.3 billion tons of food is discarded per year. Another study by Food Waste Reduction Alliance found that 84% of unused food in restaurants ends up in the trash.

To further illustrate the scale of waste, projected sales for the entire restaurant industry in 2019 is $863 billion, $160 billion of which is destined to decay in a landfill. That is a lot of money lost on inefficient storage, portion sizes, or too much inventory. With food costs reaching approximately 30% of typical expenses in the food industry with thin margins, food waste reduction can be an easy and accessible way of quickly increasing revenue.

Here are some general ideas to help reduce food waste:

One common source of waste is holding too much inventory compared to expected sales. Getting more efficient with identifying trends in sales can help manage the amount of inventory needed. The goal is to have enough inventory to supply consumers while prolonging the shelf life of excess inventory to minimize waste.

Another place to start is to create an audit to identify trends in the kitchen. We can learn a lot by identifying the types of items that wasted regularly. Creating a log of items that are discarded and recording the reasons for the waste will help identify problems ahead in the chain. We might find that the waste is due to cold storage temperature or food handling processes, for instance. Using a FIFO (first-in-first-out) food rotation system can help eliminate food waste due to spoilage.

 

 

Of course, waste culture is shared in part by the consumer. The prevalence of cheap food and lots of it means larger portion sizes. Reducing portion size for the consumer means less waste and reduced cost. However, the implication of reducing portion size is unattractive due to the competitive nature of the business, especially in American super-sized culture. However, we can balance consumer expectations by focusing on the least to most popular items. Strategically reducing portions can help cut waste and maintain customer satisfaction.

These are simple ideas to start, but there are many more complex strategies to cut costs and minimize waste. The main point here is to illustrate that waste is a huge issue in the industry, and even taking a few simple steps can help to minimize waste and thereby increase revenue. To find out more about waste reduction strategies using data-driven and experienced techniques specific to your operation, please contact Synergy.

Food delivery is now more common and convenient than ever, and modern technology has made it easier for people to access food no matter where they are.  Many restaurants stumble because they do not have their restaurants properly set up for delivery.  Restaurants operators who have a sound delivery strategy realize 20+% of sales towards this revenue stream, however, are they truly making money?

You’ve seen their names just about everywhere now–GrubHub, Doordash, Postmates, Uber Eats—3^rd party food delivery services are a big deal. Estimates show that the delivery market is a $13 billion industry! As a restaurant owner, these companies have probably approached you. These 3rd-party services make a delivery option possible for you, but charge approximately 15% to 30% in commission.

Wait a second, 15% to 30%? That’s quite a figure! There has been much contention around the high costs associated with such delivery services. McDonald’s has recently begun negotiating with its franchisees, and Uber Eats to reduce commissions and provide some rent and royalty relief. Beyond the cost factor, Domino’s CEO Rich Allison has rejected the idea of using 3^rd party delivery stating he would like to keep the quality and safety in their own hands. Jimmy John’s also does not rely on 3rd-party delivery services and instead delivers food to customers in “sandwich delivery zones” that are no more than a 5-minute drive or bike ride away.

 

 

It appears chains are taking a not-so-novel approach to control the costs for food delivery–they’re simply charging more. This strategy of charging more for delivery orders does not seem to negatively affect business as customers are willing to pay for this type of convenience. Consumers want convenient delivery options — you cannot ignore this truth. If you haven’t considered adding delivery as an option for your guests, be it 3rd-party or in-house, you’re falling behind!  If you need help trying to make real profits by tapping into this growing delivery industry, give us a call.  The Synergy team are experts on this subject!

Last Monday was Earth Day – this worldwide event is to bring awareness of the importance of environmental protection. That awareness also extends to the foodservice industry. On Monday, April 22, 2019 (coinciding with Earth Day) the City of Los Angeles put a new ordinance into effect, aimed at reducing single-use plastic waste. This new law requires that plastic straws be only given upon request in restaurants that have over 26 employees.

This eco-conscious move comes at a time when more and more cities are taking action against the use of single-use plastics. To reduce plastic waste, last year Seattle enacted a ban on not only plastic straws but plastic utensils as well, making compostable/biodegradable alternatives available instead. Restaurateur Danny Meyer recently announced that plastic straws would be eliminated from all U.S. Shake Shack locations, a move that Starbucks plans to achieve globally by 2020.

The trend is clear—foodservice companies are getting more environmentally friendly (either by force or choice) amidst the increased global concern over plastic waste. So what kind of alternatives are available to help restaurants comply with new laws against plastics? What are compostable straws made of and what do they look like? What are the costs?

Surprisingly, there are already many straws made from alternate, more eco-friendly materials. Innovation in this area is booming! Currently available are straws made of bamboo, paper, hay silicone, glass, steel, corn plastic, and even pasta! For the most economical value, a restaurant would likely opt for biodegradable paper straws which cost an average of about 5 cents a piece, which is double the cost of traditional plastic straws. It is easy to find non-plastic straw alternatives available in bulk from your usual restaurant product supplier or popular online sites like Amazon.

We often speak about trends among the Millennials. It’s hard to ignore this segment—after all, this is a generation that is 75 million strong in America. By 2019, Millennials are expected to outnumber Baby Boomers. Restaurant operators need to take particular care to attract and sustain this important cohort. Millennials are driving dining trends including the growing off-premise segment.

According to ROTH Capital Partners’ 2018-2019 Millennial Survey, they found that:

• Millennials believe the economy will be the same or better next year
• More than half have decreased their social media usage over the last year
• Only 26% of Millennials would prefer not to share personal information for a more tailored experience
• Two-thirds of Millennials prefer to research significant purchases online, but 57% still prefer in-store transactions
• 27% of Millennials are comfortable purchasing groceries online
• 62% of Millennials are Amazon Prime members
• More than one-third of Millennials have an Amazon Echo, Google Home, or similar product and 24% of those use them to regularly make purchases
• 15% Millennials have used virtual reality (“VR”) to evaluate furniture purchases, while 16% have used “virtual mirrors” to try on makeup or clothing
• More than half of Millennials belong to traditional fitness clubs while 28% attend classes at boutiques
• Climbing, hiking, yoga, and cycling are among the most popular fitness activities for Millennials

You can read the full report by requesting the survey here.

These key findings tell us several things: Millennials are optimistic regarding the economy; they like and are open to technology when it comes to making purchases and decisions; they are health-conscious, and they enjoy convenience. What, as restaurant owners and operators, can we learn from this? For one, is your menu reflective of the Millennial values? Are you offering healthy dishes? Are your marketing strategies using technology to help attract this segment? How is your brand resonating with this crowd?

There are many actions you can employ to ensure you’re catering to Millennials. For more information or help on your restaurant strategy, please contact Synergy.

Do you think the music you hear, aromas you smell and lighting you experience in a restaurant matters? And if so how much does it matter?

I am always surprised that so many restaurant operators don’t appreciate the importance and value in these critical sensory opportunities to improve the overall guest experience.

I am also a big fan of aroma and I love walking into a restaurant and inhaling captivating aromas that warms my heart and bring a smile to my face. I also like great lighting that creates a warm, inviting and comfortable environment that makes me feel welcomed.

While aroma and lighting are critical elements to creating a memorable guest experience I really feel strongly that the music is what creates the vibe and energy of a restaurant. Whether you realize it or not, sound guides our choices every single moment.

Great background music can make or break the dining experience and yet it’s oftentimes overlooked as part of the restaurant design strategy. Your music should always support your brand positioning and be a focus not an after thought.

From my perspective I think the Hillstone Restaurant Group really gets it right. When you’re in any of their dining rooms you will see speakers positioned in the ceiling at every four feet so it’s not blasting. Also the music programming is spot on and supports their brand strategy. They do not allow staff members to share their favorite playlists.

There are numerous interior design strategies that are vital for any successful restaurant regardless of the dining segment. Lighting, seating layout, materials, and colors all combine to deliver a great customer experience to bring a restaurant to life.

Is your restaurant is experiencing softer sales and fatigue? From our perspective a restaurant should get some form of a face-lift every 8-10 years to remain relevant and competitive. If you need some professional help give us a call.

-Dean Small

Kale, quinoa, acai—what do these ingredients have in common? They are very popular superfoods that you’ve probably already heard about and eat on a regular basis. But a new round of superfoods that haven’t yet become so mainstream is slowly but surely making their way onto menus around the nation.

At Synergy, many times, a key factor we look at when restaurants seek help from us is how their menus look. Is the restaurant adapting to changing tastes and trends? In this day and age, an important aspect that consumers look for is healthy choices. Let’s take a closer look at the opportunities that superfood ingredients can give us to create healthful, delicious menu offerings.

Chia seeds—these little things pack a nutritional punch and some fun texture, too. Chia are edible seeds from the Salvia hispanica plant. Place a small amount in any liquid, and the seeds transform into little gel-like balls, reminiscent of tapioca. Loaded with fiber, antioxidants, omega-three fatty acids, and protein, just a couple tablespoons will elevate a pudding, oatmeal, or even jam, to the next nutritional level.

Charcoal (not the kind you cook with) is another up-and-coming superfood. Specifically, activated charcoal is the edible form, known as a detoxifier. These days, you may find restaurants offering lemonade or smoothies with a punch of activated charcoal. Further creative ways to include activated charcoal in recipes is to include in freshly-baked bread, and even ice cream.

Turmeric is known for its anti-inflammatory and antioxidant properties, among other potential medicinal benefits, and it’s what makes your favorite curry dish that vibrant yellow color! Turmeric is very versatile in cooking. Try whipping up a pretty turmeric rice dish, adding turmeric to miso soup, or even creating a turmeric-based dressing for salads. The list is endless!

Incorporating superfoods into your dishes is a smart way to innovate your menu and bring in new customers.

In January the minimum wage in California is going up another dollar an hour! In Arizona, the start of 2019 marks a fifty cent increase in minimum wage. The harsh reality is that when this happens everyone’s wages get impacted. If you plan to pay a dishwasher $11.00/hour which will most likely be $12.00/hour (because you can’t find anyone to do that job for minimum wage), then you’ll need to pay a basic prep cooks $14.00-16.00/hour!  Everyone’s wages will need to go up. What’s a restaurant operator to do? They can’t just absorb the increase, but instead will have to pass it on to the customer by raising menu prices.

California Minimum Wage Across Cities and Towns 2018

Year	1-25 employees	26+ employees
2017	$10.00	$10.50
2018	$10.50	$11.00
2019	$11.00	$12.00
2020	$12.00	$13.00

Source: SwipeClock

Restaurant operators tend to get very nervous when they have to raise menu prices as it often leads to declining guest counts and consumers going to other restaurants to find a better value. How can a restaurant cope, let alone thrive in light of such challenges? Instead of blindly increasing menu prices, it is crucial a restaurant investigates other facets of their operation that are underperforming. Are you overstaffed? Is your menu too complicated? Is your kitchen optimized for cooking?

 

It’s not too early to get a head start to a profitable 2019.  As efficiency experts, Synergy Restaurant Consultants can find real solutions through innovative menu and labor optimization strategies. Synergy provides Productivity Assessments to analyze staff levels, understand labor performance and implement best practices that optimize operations, slash labor costs and boost productivity.

For the last 30 years Synergy has helped hundreds of independent restaurant operators along with regional and national restaurant chains improve the productivity of their staff:

As the founding partner I promise you this:  if you engage us for a Holistic Operations Assessment

• We will make you money
• We will save you money
• We will improve the overall financial performance of your business
• We will help you to improve the overall  execution of your food, beverage and hospitality strategy

Dean Small

If you’re a Golden State resident, you may have gotten used to bringing reusable bags to the grocery store. It’s been over a year since California banned retailers from handing out single-use plastic bags to customers due to environmental concerns. Numerous cities have taken it a step further by imposing restrictions on restaurants giving out plastic straws such as Malibu, Seattle, Miami Beach and San Luis Obispo.

These restrictions make sense. According to ecocycle.org, 500 million straws are used in the US every day which contribute significantly to plastic pollution, especially in our oceans. In the UK, a ban on sales of single-use plastics, including plastic straws will be in effect as early as next year.

 

 

 

Even major brands are taking notice. As part of McDonald’s effort to make their stores more environmentally friendly, 1,300 locations across the U.K. will be phasing out plastic straws and testing paper straws.

Is your city next? As a restaurant owner, it is ever-important to not only keep abreast of new legislation that can affect your operation, but to also be fully prepared! Paper, wood or bamboo are good alternatives to plastic straws and cutlery. There are numerous options on the market that are easily ordered online or through your local supplier. Even if your restaurant hasn’t been banned from using plastic straws, it doesn’t hurt to be more mindful and eco-friendly.

You’ve heard of Neopolitan pizza—the pie that originated in Naples that’s prepared with a few fine ingredients and cooked in a wood-fired oven. You’ve tasted NY style pizza—large in size with a pliable, thin crust. But have you heard of Roman-style pizza? Also known as “pizza al taglio,” this is a pie variation that is served as street food and sold by the ounce. Think of it quite simply as Roman pizza-by-the-slice.

 

So what’s the difference between a Roman-style pizza and the kind you can already order now? The largest difference is that instead of paying per slice, you are paying by weight (i.e., $1.20 per ounce). For example, instead of asking for one slice, you would show how much you want.

 

As for taste, pizza al taglio has a lighter, airy crust with a bit of a chewy texture, and is cooked in large rectangular pans. For toppings, think of traditional Italian fare: combinations of prosciutto, Gorgonzola, arugula, tomatoes, ricotta, peppers, sausage and more.

 

This concept can translate into a great fast-casual opportunity. There is a growing niche of  restaurants serving up Roman-style pizza, to including nontraditional toppings (think hummus and pesto). Keep an eye out for this trend coming to your neighborhood. Could this be an opening for other restaurants to selling a variety of other foods by-the-ounce? Synergy will keep you posted!